Former Sisseton-Wahpeton Housing Officials Plead Guilty to Embezzlement

ABERDEEN - United States Attorney Ron Parsons announced that Eric Shepherd, age 53, of Wilmot, South Dakota, and Olivia Locke, age 60, of Sisseton, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on August 3, 2026, and pleaded guilty to Conspiracy to Commit Theft from a Program Receiving Federal Funds.             

The maximum penalty upon conviction is five years in custody, a $250,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.  Restitution may also be ordered. 

Shepherd was the executive director of the Sisseton Wahpeton Housing Authority (SWHA) between September 2019 and July 2025.  Locke was the chief financial officer.  During that time, Locke and Shepherd issued and cashed over $3,500,000 in unauthorized SWHA checks for their personal enrichment.  

“Stealing from the government is stealing from the American people,” said U.S. Attorney Parsons.  “Our federal prosecutors are dedicated to ensuring that criminals like these are caught and sentenced to federal prison, so it becomes abundantly clear that crime does not pay.”

“Olivia Locke and Eric Shepherd abused their positions of trust by engaging in multiple fraud schemes and stealing more than $3.5 million in federal funds intended to serve some of the community’s most vulnerable residents,” said Special Agent in Charge Machelle Jindra with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG). “This is not an isolated act of misconduct but a deliberate effort that diverted millions of dollars in critical resources designed to assist those most in need.  HUD OIG remains committed to working with our law enforcement partners to aggressively investigate and hold accountable individuals who misuse public funds and exploit positions of trust for personal gain.”

The investigation was conducted by the FBI, the United States Attorney’s Office, and the Housing and Urban Development Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorney Carl Thunem

A presentence investigation was ordered, and a sentencing date was set for November 9, 2026.  The defendants were detained pending sentencing.